Checking a machine at the Thai Binh 1 thermal power plant, a project built with Japanese ODA (Photo: VNA)

Hanoi (VNA) –
The Standing Committee of the National Assembly (NA) has recently issued a resolution on promoting law enforcement on the management and use of foreign loans.

The issuance of Resolution 582/NQ-UBTVQH 14 is based on a report of the NA Standing Committee’s inspection team on the management and use of foreign loans in 2011-2016.

The resolution said the legal system has been improved in line with policies of the Party and State and basically meets the requirements in the use and management of foreign loans.

Over the years, the use of this capital source has been effective with prompt disbursement. Meanwhile, inspection and auditing of the use of foreign loans have been strengthened, raising the efficiency of projects funded by foreign loans.

The NA Standing Committee asked the Government to review the legal system and the implementation of regulations on foreign loans, while continuing to perfect regulations on the mobilisation, management and use of official development assistance  and foreign preferential loans.

The Government was also asked to study revisions to Law on Public Investment to make it align with the Constitution and related laws, and submit the revised bill to the NA.

In addition, the Government was tasked with devising a strategy for foreign loan mobilisation, in line with the country’s socio-economic development strategy and step by step adjusting the ratio of foreign debts in public debts.

The resolution said foreign loans should be mainly used for purposes and tasks decided by the NA and major projects in fields of importance such as climate change adaption, clean energy, transport and irrigation.

It required the Government to adhere to the cap on investment from State budget at under 2,000 trillion VND (85.32 billion USD) in the 2016-2020 and safety limits of public debt as set by the NA, particularly the limit regarding the Government’s foreign debt.-VNA